Parliament receives insufficient information on tax revenues to perform its oversight role. Accountability for the annual tax revenues (€301.6 billion according to the 2026 Budget Memorandum) is spread across various annual reports and lacks explanation. This makes it difficult for parliament to see the results of tax measures, risking missed opportunities to make the tax system more effective, efficient, and simpler. This investigation by the Netherlands Court of Audit offers concrete recommendations to improve information provision.
Accountability of revenues spread over various reports and articles
Information on tax revenues is not found in one place in the Ministry of Finances annual report but is spread across different annual reports and policy articles. The Financial Annual Report of the Government (FJR) does include an annex listing all tax revenues, but differences between expected and actual tax revenues are often not (or only limitedly) explained here. There is also no detailed multi-year overview of tax revenues, so developments compared to the past are not visible.
Dispersed accountability of tax and premium revenues
Article 1 Taxes covers only part of the tax revenues
No accountability for tax plans
The tax system is changed annually through the tax plan, which the cabinet submits on Budget Day. It would be logical if parliament then periodically received accountability in one document about the differences between expected and actual revenues from those tax plan measures. This would clarify whether the (budgetary) objectives of tax measures are achieved. Such accountability currently does not exist, making it difficult for members of parliament to determine whether tax measures perform as expected.
Limited explanation of origin of tax revenues
Parliament receives limited information about the bases of tax revenues, although that information is available. For example, income tax revenues consist of tax on income from work and tax on income from assets. In the information parliament receives about income tax, only a total amount is mentioned. Therefore, it is unclear which part of the tax revenues is levied on which type of income. A possible shift of tax burden from assets to labor remains invisible. The Court of Audit shows in its report that more is possible.
More insight into the breakdown of income tax is possible
The composition of the 2022 income tax by tax bases (boxes and income categories) provides more detailed policy information.
Legal risks not visible
Based on the so-called Christmas ruling on box 3, since 2022 risks of ongoing legal procedures must be reported in the accountability. However, tax procedures are exempted from this based on tax confidentiality (Article 67 of the General Tax Act), while these legal procedures often lead to significantly lower revenues. The box 3 rulings from 2021 and 2024, for example, led to an estimated setback for the treasury of more than €15 billion. There is no good reason not to report legal risks for tax procedures. The minister also acknowledges this in response to this report.
Concrete recommendations for more complete information
The Netherlands Court of Audit sees concrete possibilities to improve the information provision on tax revenues to parliament. For example:
- Include all tax revenues in the Ministry of Finances annual report and adjust the layout so that members of parliament receive all information in one place and overview.
- Make the specification of tax revenues more detailed. Where possible, include explanations about tax bases and the distribution of the tax burden among groups of taxpayers.
- Include more information about goals and results of tax policy and report on this annually.
The Minister of Finance has announced several steps following our publication to improve information provision on tax revenues. The Netherlands Court of Audit considers it important that members of parliament are involved in this process.
